India Inc’s investment plans rise to $244 bn

New Delhi, Aug 17 (IANS) Despite the global economic slowdown, capacity expansion plans of Indian corporates surged to Rs.10.5 trillion ($244 billion) in the first six months of the current fiscal against Rs.5.67 trillion in the same period last year, an industry lobby said. According to the Associated Chamber of Commerce and Industry of India (Assocham), on state-wise investments, Maharashtra, followed by Andhra Pradesh and Orissa, were the most preferred destinations by the private players in the first half of 2008.

The biggest announcement was made by Tata Power at Rs.250 billion to raise generation capacity from 2,368 MW to 12,861 MW for the next five years, followed by Reliance Industries for setting up semi conductors and other micro-technology units at an investment of Rs.216.6 billion for the next 10 years.

Andhra Pradesh also attracted huge investments with a share of 10.11 percent totalling Rs.1.06 trillion. Companies like Reliance Industries, Hindujas Group, Videocon Industries and Gas Authority of India Ltd would invest in the state in the next five years.

Orissa emerged as the third most preferred destination with investment announcements worth Rs.889.02 billion for the next two to five years.

Vedanta Resources announced an investment of Rs.240 billion, while Sterlite Industries pledged to pump some Rs.170 billion into the power generation sector in Orissa. Besides, National Aluminium Corp (NALCO) said it would invest Rs.140 billion in the state for setting up a greenfield aluminium and captive power plant.